TAXATION 

OF 

PERSONAL 

PROPERTY 

IN  THE 

STATE  OF  NEW  YORK 


PUBLISHED  BY 

THE  DEPARTMENT  OF 
TAXES  AND  ASSESSMENTS 
OF  THE 

CITY  OF  NEW  YORK 


Commissioners : 

LAWSON  PURDY,  President 
CHARLES  J.  McCORMACK 
JOHN  J.  HALLERAN 
CHARLES  T.  WHITE 
DANIEL  S.  McELROY 
EDWARD  KAUFMANN 
JUDSON  G.  WALL 


TAXATION  OF  PERSONAL  PROPERTY 
IN  THE  STATE  OF  NEW  YORK. 


Compiled  by 

Edward  L.  Heydecker, 

Assistant  Tax  Commissioner. 

CONTENTS. 

PAGE 

What  is  Personal  Property 3 

Exemptions  of  Personal  Property .......  4 

Absolute  Exemptions  4 

Exemptions  because  of  special  taxes  im- 
posed   5 

Exemptions  because  of  nature  of  owner- 
ship . 6 

Personal  Property  which  is  liable  to  taxa- 
tion under  the  general  property  tax. . 6 

Offset  of  Debts 7 

Just  Debts 7 

Persons  and  corporations 7 

Partners 7 

Taxable  Personal  Property 8 

Location  of  Personal  Property 9 

Non-Residents  10 

Trustees,  Executors,  Administrators  &c.  . 11 

Assessed  Values  xi 

Method  of  Assessment 12 

Amount  of  Revenues  from  Special  Taxes 

on  classified  Personal  Property 12 

Corporation  Application  Blanks.  15 

Secured  Debts  Law 18 


2 


TAXATION  OF  PERSONAL  PROPERTY 
IN  THE  STATE  OF  NEW  YORK. 

The  State  of  New  York,  like  most  of  the  other 
States  of  the  Union,  has  a provision  in  its  tax 
law,  declaring  that  all  property,  real  or  personal, 
is  liable  to  taxation,  unless  exempt  by  law. 

WHAT  IS  PERSONAL  PROPERTY. 

By  common  law,  all  property,  which  is  not 
real  property,  is  considered  to  be  personal  prop- 
erty. Hence  it  is  somewhat  difficult  to  state  in 
law  what  is  personal  property,  with  the  same 
exactness  as  in  the  case  of  real  property. 

Under  the  definition  of  personal  property  in 
the  Tax  Law  the  term  “personal  property”  is 
not  as  broad  as  the  similar  term  in  common  law. 
For  example,  good-will  is  personal  property  in 
common  lav/  but  is  not  personal  property  in  the 
tax  law. 

It  may  be  stated  however  that  in  common  law 
under  the  head  of  personal  property  are  included 
the  following  forms  of  property: 

1.  All  tangible  movable  things,  such  as 
horses,  cattle  and  all  live  stock, 
carriages,  wagons,  automobiles, 
furniture,  books,  pictures,  jewelry, 
clothing  and  personal  effects, 
merchandise  and  all  stock  in  trade, 
machinery  and  tools, 

vessels, 

2.  All  intangible  rights  not  attached  to  real 
property  which  are  expressed  in  written  in- 
struments such  as 

certificates  or  shares  of  capital  stock, 
corporate  bonds, 

mortgages  on  real  or  personal  property, 

promissory  notes, 

book  credits, 

deposits  in  banks, 

patent  rights, 

trade-marks  and  copyrights, 
rentes  reserved. 


3 


3-  All  intangible  rights,  not  connected  with  real 
property,  and  not  expressed  by  written  in- 
struments, such  as 

Good-will. 

EXEMPTIONS  OF  PERSONAL  PROP- 
ERTY. 

Exemptions  of  personal  property  are  of  three 

kinds : 

A.  Absolute  exemption. 

B.  Exemption  from  the  general  property  tax  be- 
cause the  particular  class  of  personal  prop- 
erty has  been  subjected  to  some  special  tax. 

C.  Because  of  nature  of  ownership. 

A.  ABSOLUTE  EXEMPTIONS. 

These  include 

1.  Tangible  personal  property: 

a.  Furniture  and  personal  effects  to  the  value 
of  $.1,000  for  each  person. 

b.  Vessels  registered  in  any  port  of  this  State 
and  engaged  in  ocean  commerce  between  any 
port  in  the  United  States  and  any  foreign 
port,  until  December  31,  1922. 

c.  Property  exempt  from  execution,  including 
furniture,  library  and  professional  instru- 
ments of  any  man  who  supports  a family  or 
of  any  woman,  to  the  extent  of  $250. 

d.  Imported  goods  in  unbroken,  unsold, 
original  packages. 

2.  Intangible  personal  property,  which  is  ex- 
pressed by  written  instruments: 

a.  Certificates  or  shares  of  corporate  stock, 

b.  Deposits  in  savings  banks, 

c.  Patent  rights, 

d.  Trade-marks  and  copyrights, 

e.  Bonds  of  the  United  States,  of  the  State 
of  New  York  and  of  any  municipal  sub- 
division of  the  state. 


4 


3.  Intangible  personal  property,  not  expressed 
in  written  instruments : 

a.  Good-will. 

b.  Accumulations  of  a domestic  life  insurance 
corporation,  held  for  the  exclusive  benefit 
of  the  insured. 

c.  Moneys  of  co-operative  or  assessment  in- 
surance companies. 

d.  Unearned  premiums  of  any  fire,  casualty 
or  insurance  company. 

e.  Accumulations  of  any  incorporated  co- 
operative loan  association. 

B.  EXEMPTIONS  BECAUSE  OF  SPECIAL 
TAXES  IMPOSED. 

1.  Tangible  personal  property: 

a.  Automobiles. 

2.  Intangible  personal  property,  which  is  ex- 
pressed by  written  instruments: 

a.  Corporate  bonds,  when  registered  under 
the  “Secured  Debts”  law  or  “Recording  Tax 
Act,” 

b.  Mortgages  on  real  property  within  the 
State  when  the  mortgage  recording  tax  has 
been  paid  and  bonds  secured  by  such  mort- 
gage, 

c.  Mortgages  on  real  property  outside  the 
state  when  registered  under  the  “Secured 
Debts”  law. 

d.  Capital,  surplus  and  undivided  profits  of 
banks,  national  and  state,  because  of  special 
tax  of  i%  measured  thereby. 

e . Capital,  surplus  and  undivided  profits  of 
trust  companies,  because  of  special  tax  of 
i°/o  measured  thereby. 

/.  Surplus  of  savings  banks,  because  of  spec- 
ial tax  of  measured  thereby. 


5 


C.  BECAUSE  OF  NATURE  OF  OWNER- 
SHIP. 


a.  Property  of  the  United  States,  the  State 
of  New  York,  and  the  various  municipalities 
within  their  own  corporate  limits. 

b . Property  of  certain  charitable,  religious, 
&c.,  corporations. 

PERSONAL  PROPERTY  WHICH  IS  LIA- 
BLE TO  TAXATION  UNDER  GEN- 
ERAL PROPERTY  TAX. 

1.  Tangible  movable  things: 

a.  Horses,  cattle  and  all  live  stock. 

b.  Carriages  and  wagons. 

c.  Furniture,  books,  pictures.  'j  jn  excess 

d . Jewelry,  clothing  and  personal  ^-of  $1000 

effects.  J in  value. 

e.  Merchandise  and  all  stock  in  trade  (except 
imported  goods  in  unbroken  original  pack- 
ages, unbroken  and  unsold). 

/.  Machinery  and  tools, 

g.  Vessels  (except  vessels  in  foreign  trade). 

2.  Intangible  rights,  not  attached  to  real  prop- 
erty, which  are  expressed  in  written  instru- 
ments : 

а.  Corporate  bonds,  if  not  registered  under 
“Secured  Debts”  law  or  “Recording  Tax 
Act.” 

б.  Mortgages  on  real  property,  if  mortgage 
recording  tax  has  not  been  paid  or  if  not 
registered  under  “Secured  Debts”  law. 

c.  Mortgages  on  personal  property. 

d . Promissory  notes. 

e.  Book  credits. 

/.  Deposits  in  bank,  except  in  savings  banks. 

g.  Rents  reserved  on  leases  of  over  21  years, 


6 


OFFSET  OF  DEBTS. 


From  the  assessed  value  of  personal  property, 
liable  to  taxation,  the  person  or  corporation  as- 
sessed is  allowed  to  deduct  the  total  of  all  “just 
debts  owing-  by  him,”  subject  however  to  the 
limitation  affecting  unregistered  “Secured  Debts” 
hereinafter  referred  to. 

JUST  DEBTS. 

These  debts  which  may  be  deducted  are: 

1.  Amount  owing  on  bond  and  mortgage,  on 
which  the  person  claiming  the  offset  is  liable,, 
while  he  remains  the  owner. 

2.  Amount  owing  on  promissory  notes. 

3.  Amount  owing  on  book  debits  or  contracts. 

Just  debts  do  not  include  contingent  liabilities 
as  guarantor  or  endorser,  unless  such  liabilities 
have  become  fixed,  or  debts  incurred  for  the  pur- 
pose of  evading  taxation. 

PERSONS  AND  CORPORATIONS. 

The  law  makes  no  distinction  as  to  liability 
for  taxation.  A corporation  is  liable  for  taxation 
on  its  personal  property,  in  the  same  manner 
as  if  it  were  a natural  person,  subject  to  ex- 
ceptions in  a few  minor  particulars  (see  cor- 
porations form,  page  15).  Shareholders  in  a 
corporation  are  not  liable  to  taxation  on  their 
shares  because  the  property  represented  thereby 
is  taxed  to  the  corporation. 


PARTNERS. 


The  tax  law  does  not  recognize  partnerships. 
Hence  each  partner  is  liable  upon  his  undivided 
.share  of  the  taxable  assets  of  the  firm,  after  de- 
ducting his  share  of  its  liabilities. 


7 


TAXABLE  PERSONAL  PROPERTY. 

T angibles. 

These  appear  in  the  following  groups : 

1.  Horses,  cattle,  live  stock,  carriages  and 
wagons. 

These,  of  course,  are  chiefly  in  the  rural 
districts  and  are  the  property  of  farmers. 

There  are  many  horses,  carriages  and 
wagons  in  the-  cities  but  in  most  instances 
they  are  the  property  of  firms  or.  corpora- 
tions rather  than  individuals.  All  these  are 
taxable  at  their  market  value,  subject  only 
to  the  offset  of  the  “just  debts”  of  their 
respective  owners. 

2.  Merchandise  and  stock  in  trade  (except  im- 
ported goods  in  original,  unbroken,  unsold 
packages).  This  covers  all  the  stock  of 
goods  of  merchants,  both  wholesale  and  re- 
tail, whether  owned  by  individuals,  firms  or 
corporations.  It  also  includes  the  product, 
finished  or  unfinished,  of  manufacturers.  It 
is  taxable  at  its  market  value,  subject  only 
to  the  offset  of  “just  debts”  of  the  owners. 

3.  Machinery  and  tools. 

This  includes  all  machinery  and  tools  for 
manufacturing,  mining  or  any  industrial 
enterprise,  together  with  boilers,  motors  and 
all  power-producing  machinery,  provided  it 
is  not  so  affixed  to  the  building  as  to  be 
part  of  the  real  estate.  It  is  subject  to  the 
offset  of  “just  debts”  like  other  forms  of 
personal  property. 

4.  Vessels  (except  vessels  in  the  foreign  trade). 
This  includes  all  floating  property,  engaged 
in  domestic  commerce,  and  all  pleasure 
crafts.  It  is  subject  to  offset  of  “just  debts” 
as  above. 

5.  Furniture,  books,  pictures,  jewelry,  clothing 
and  personal  effects. 

8 


An  exemption  of  $1000  to  each  person  is 
allowed  against  these  and  in  addition  an 
exemption  of  $250  to  each  householder  or 
each  woman. 

Intangibles. 

These  appear  in  two  groups. 

1.  a.  Corporate  bonds  included  in  the  defi- 
nition of  “Secured  Debts”  which  have  not 
been  registered  under  the  “Secured  Debts” 
law.  (See  definition  page  18). 

b.  Mortgages  on  real  property  outside  of  the 
State,  which  have  not  been  registered  under 
the  “Secured  Debts”  law. 

c.  Rents  reserved  on  leases  of  over  21  years, 
&c. 

The  offset  of  “just  debts”  Is  not  allowed 
against  these  items  and  they  are  to  be  assessed 
at  market  value  and  retained  upon  the  roll, 
regardless  of  the  “just  debts”  of  their  owners. 

2.  a.  Mortgages  on  real  property  in  the  State 
of  New  York,  on  which  the  mortgage  re- 
cording tax  has  not  been  paid.  (This  means 
old  mortgages  and  the  bonds  thereby  se- 
cured recorded  prior  to  July  1,  1906,  and 
which  have  been  registered  under  the  law.) 

b.  Mortgages  on  personal  property  (chattel 
mortgages). 

c.  Promissory  notes. 

d.  Book  credits. 

e.  Deposits  in  banks,  except  savings  banks. 

The  offset  of  “just  debts”  by  their  respective 
owners  is  allowed  against  these  items. 

LOCATION  OF  TAXABLE  PROPERTY. 

The  assessing  authorities  of  the  various  tax 
districts  of  the  State  have  jurisdiction  over  the 
citizens  of  New  York,  resident  in  their  respective 
districts,  to  assess  them  for  taxable  personal 
property  owned  by  them.  This  jurisdiction  is 
subject  however  to  the  following  limitation: 


9 


Tangible  personal  property,  which  is  located 
outside  of  the  State,  cannot  be  assessed  to  the 
owner,  who  is  a resident  of  the  State,  but  tangi- 
ble persona!  property  located  in  the  State  but 
in  a tax  district  other  than  the  tax  district  in 
which  the  owner  resides,  may,  nevertheless,  be 
assessed  to  the  owner  in  the  tax  district  in  which 
he  does  reside.  Thus  a resident  of  the  City  of 
New  York  who  owns  tangible  personal  property, 
located  in  New  Jersey,  cannot  be  assessed  for 
such  property,  because  it  is  not  under  the  juris- 
diction of  the  State  of  New  York,  but  if  he 
owns  tangible  personal  property  in  Delaware 
County,  he  may  be  assessed  for  it  in  the  City 
of  New  York  and  the  tax  district  in  Delaware 
County,  where  it  is  located,  has  no  jurisdiction 
to  assess  it. 

On  the  other  hand  all  intangible  personal 
property,  owned  by  a resident  of  a tax  district 
in  the  State  of  New  York,  no  matter  where  the 
written  evidences  of  such  property  may  be,  or 
where  the  debtor  may  reside,  are  to  be  assessed 
xo  such  owner  in  the  tax  district  where  he  re- 
sides. Thus  a resident  of  the  City  of  New  York, 
who  has  taxable  bonds  in  a safe  deposit  box  in 
Jersey  City,  N.  J.,  and  has  bank  balances  in 
Albany,  N.  Y.,  or  Boston,  Mass.,  or  Hong  Kong, 
or  book  credits  due  from  Chicago,  111.,  is  to  be 
assessed  upon  all  of  them,  subject  to  the  offset 
of  his  “just  debts.” 

NON-RESIDENTS. 

In  addition  to  jurisdiction  to  assess  citizens, 
who  are  resident  within  the  tax  district,  the  as- 
sessors have  jurisdiction  to  assess  certain  prop- 
erty of  non-residents  within  the  tax  district,  as 
follows : 

1.  The  capital  of  non-residents  of  the  State  in- 
vested in  business  within  the  tax  district. 

2.  The  tangible  personal  property  of  non-resi- 
dents, having  an  actual  situs  in  the  tax  dis- 
trict, not  forming  part  of  the  capital  in- 


io 


vested  in  business.  This  does  not  include 
bonds  or  other  evidences  of  debt. 

By  “capital  invested  in  business’’  is  meant  the 
balance  of  taxable  assets  over  and  above  the 
“just  debts”  and  exemptions  allowed  by  law. 

TRUSTEES,  EXECUTORS,  ADMINISTRA- 
TORS &c. 

It  is  the  duty  of  the  assessors  to  assess  the 
person  who  holds  the  legal  title  to  personal 
property.  Hence  all  who  stand  in  a trust  ca- 
pacity, holding  the  legal  title  for  the  benefit  of 
others,  are  to  be  assessed  as  owners  and  the 
beneficiaries  are  not  to  be  assessed.  ‘ The  offset 
of  “just  debts”  applies  to  trust  estates  as  well 
as  to  individuals.  . 

ASSESSED  VALUE. 

The  tax  law  requires  assessors  to  assess  at  full 
value.  In  various  sections  of  the  law  and  in 
the  provisions  of  local  charters,  other  phrases 
have  been  used  but  they  have  all  been  interpreted 
to  mean  “full  value.” 

What  then  is  the  “full  value”  of  personal 
property?  It  means  the  sum  for  which  it  can 
be  converted  into  cash.  It  does  not  mean  the 
amount  which  it  cost  to  acquire  it,  or  the  amount 
of  money  needed  to  replace  it,  or  the  sum  for 
which  it  is  insured,  but  the  amount  of  money 
for  which  it  can  be  sold.  Some  of  the  items  of 
personal  property,  such  as  book  credits  and 
stock  of  merchandise,  are  exceedingly  difficult 
of  appraisal  and  assessment  for  this  reason. 
Book  credits  may  be  of  doubtful  value  because 
the  debtor  may  be  on  the  verge  of  insolvency. 
Merchandise  may  be  old  or  out  of  style  or  dam- 
aged and  not  worth  what  it  has  cost  to  obtain  it. 

All  these  things  must  be  considered  by  the 
assessors.  He  must  hold  the  scales  even  as  be- 
tween the  municipality  and  the  tax-payer.  He 
must  not  penalize  the  tax-payer  by  an  over-assess- 
ment or  defraud  the  municipality  by  an  under- 
assessment. 


it 


METHOD  OF  ASSESSMENT. 


The  assessor  is  directed  by  law  to  “make  due 
and  diligent  inquiry  as  to  taxable  persons”  within 
his  jurisdiction  and  in  the  oath  which  must  be 
attached  to  the  assessment  roll  is  the  declaration 
that  it  “contains  a true  statement  of  the  aggre- 
gate amount  of  the  taxable  personal  estate  of 
each  and  every  person  named  in  such  roll  over 
and  above  the  amount  of  debts  due  from  such 
persons,  respectively.” 

AMOUNT  OF  REVENUE  FROM  SPECIAL 
TAXES  ON  CLASSIFIED  PER- 
SONAL PROPERTY. 

Nearly  all  the  forms  of  personal  property, 
which  constitute  what  may  be  regarded  as  in- 
vestment securities  have  been  classified  and  are 
subject  to  some  special  tax  in  place  of  the  gen- 
eral property  tax.  These  forms  are  shares  of 
stock,  bonds,  mortgages  and  long-time  notes, 
commonly  called  debentures.  Of  these 

1.  Shares  of  stock  are  not  taxable  to  the  holder 
because  the  corporation  is  taxed  upon  its  as- 
sets over  liabilities  the  same  as  an  individual. 

2.  Bonds  may  be  registered  under  the  “Secured 
Debts”  law  and  on  paying  the  tax  therein 
provided,  become  exempt  from  state  and 
local  taxation. 

3.  Mortgages  are  required  to  pay  the  mortgage 
recording  tax  when  they  are  offered  for 
record  and  on  payment  of  such  tax,  they 
become  exempt  from  state  and  local  taxation. 

4.  Debentures  may  be  registered  under  the  “Se- 
cured Debts”  law,  the  same  as  corporate 
bonds. 

In  addition  to  the  above,  we  have  the 

Inheritance  Tax  Law,  which  operates  largely  as 
a deferred  personal  property  tax. 


12 


Corporation  Franchise  Taxes,  which  likewise 
operate  as  a substitute  for  the  general  prop- 
erty tax  on  personal  property,  for  state  pur- 
poses. 

Tax  on  Bank  Shares. 

Tax  on  Trust  Companies. 

Tax  on  Insurance  Premiums. 

Tax  on  Savings  Bank  Surplus. 

Tax  on  Stock  Transfers. 

Tax  on  Automobiles. 

Tax  on  Liquor  Licenses  or  Excise. 

Tax  on  all  corporations  for  the  privilege  of 
doing  business  as  a corporation  with  some 
modifications  and  additional  taxes  in  case  of 
some  corporations. 

all  of  which  operate  as  substitutes  for  the  gen- 
eral property  tax  on  personal  property. 


From  these  classified  taxes  the  annual  receipts 
as  last  reported  were: 

Excise $15,664,997.82 


Corporation  Franchise  Taxes 

Insurance  Premium  Tax 

Savings  Bank  Surplus 

Trust  Companies  

Stock  Transfers 

Inheritance  Tax 

Mortgage  Recording  Tax 

Automobile  Tax 

Bank  Share  Tax 

Secured  Debt  Tax 


10,119,009.83 


3.499.81  i.  32 
8,152,198.77 
3.575.243-32 
878,799.25 
4,306,489.24 
1,500,000.00 


$47,696,551.55 

The  assessed  value  of  personal  property,  as 
last  reported,  is 

State  of  New  York,  outside  of 

City  of  New  York $109,855,368.20 

City  of  New  York 342,963,540.00 


$452,818,908.20 


13 


Domestic  corporations  are  assessed  pursuant  to 
the  provisions  of  Section  12  of  the  Tax  Law. 
This  was  enacted  in  1855  and  has  been  inter- 
preted many  times  by  the  courts.  It  must  be 
read  in  the  light  of  these  court  decisions.  The 
form  of  application  for  reduction,  given  below, 
is  in  fact,  a digest  of  these  Court  decisions  as 
applied  to  the  original  Section  12. 


*4 


THIS  STATEMENT  SHOULD  BE  FILED  BY  NOVEMBER  10.  IT 
MUST  BE  FILED  BY  DECEMBER  I. 

THE  CITY  OT  NEW  YORK 


DEPARTMENT  OF  TAXES  AND  ASSESSMENTS 

MAIN  OFFICE 

Hall  of  Records.  Northwest  Corner  Chambers  and 
Centre  Streets 
Borough  of  Manhattan 


The , 

(Please  state  full  name  of  the  corporation.) 
a corporation  organized  under  the  laws  of  the  State  of 
New  York,  claiming  to  be  aggrieved  by  the>  assessed 
valuation  of  its  property  for  the  year  1912,  makes  ap- 
plication by  the  undersigned,  one  of  the  officers  of  the 
said  corporation,  to  have  the  same  revised  and  cor- 
rected. 

Dated  October  2,  1911. 


STATE  THE  VALUE  OF  THE  FOLLOWING  ITEMS  : 


ASSETS 

All  assets  must  be  scheduled,  whether  located 
in  the  State  of  New  York,  or  elsewhere,  in- 
cluding deposits  in  banks  and  debts  due  from 
non-residents. 

1.  Real  estate $ 

2.  Machinery  and  plant  other  than  real  estate  $ 

3.  Goods,  wares  and  merchandise $ 

4.  All  other  tangible  personal  property. 

(This  does  not  include  mortgages  or  credits)  $ 

5.  Cash  on  hand  and  on  deposit $ 

6.  Debts  due  from  solvent  debtors.  (This 

includes  bonds  and  all  credits,  also  '‘secured 
debts”)  $ 

7.  Shares  of  stock  of  other  corporations $ 

8.  Value  at  which  patent  rights,  copyrights, 
trade-marks,  goodwill  and  franchises  were 

taken  in  payment  for  capital  stock $ 


9.  The  aggregate  of  the  above  assets $ 

DEDUCTIONS 

Except  the  items  numbered  12,  15,  17  and  18, 
the  value  of  every  item  to  be  deducted  must  be 
the  sum  at  which  it  is  included  in  the  above 
statement  of  assets. 

10.  Property  exempt  by  law,  which  includes : 

U.  S.  Bonds,  N.  Y.  State  and  Municipal 

Bonds  $ 

N.  Y.  Mortgages  recorded  on  or  after 
July  1,  1906,  and  mortgages  on 

which  a registration  tax  has  been 
paid  since  May  13,  1907,  also  “secur- 
ed debts.”  (This  includes  only 
mortgages  and  “secured  debts” 

owned  by  the  corporation) $ 

Goods  imported  by  above  corpora- 
tion from  foreign  countries  on  hand 
in  unbroken  original  packages $ 


15 


n.  Value  at  which  patent  rights,  copyrights, 
trade-marks,  good  will  and  franchises  were 
taken  in  payment  for  capital  stock $ 

12.  So  much  of  the  surplus,  if  any,  as  shall 

not  exceed  ten  per  centum  of  the  par  value  of 
the  shares  of  stock  issued $ 

13.  Shares  of  stocx  of  other  corporations 

actually  owned  by  the  above  corporation  which 
are  taxable  upon  their  capital  stock $ 

14.  Tangible  personal  property  having  a per- 


manent situs  outside  of  this  State,  specifying 
its  nature  and  location.  (This  does  not  include 
bonds,  notes,  evidences  of  debt  of  any  kind, 
currency,  deposits  in  banks,  bills  receivable,  or 
any  other  intangible  property) 


15.  The  assessed  value  of  the  corporation’s 
real  estate  in  this  State,  including  its  special 
franchises.  Give  Section  or  Ward  and  Lot 
Numbers  if  in  The  City  of  New  York 


16.  Real  estate  outside  of  this  State,  specify- 
ing its  location 


17.  Indebtedness  secured  by  the  corporation’s 

bond  and  mortgage  on  real  property  to  which 
corporation  now  holds  title $ 

18.  All  other  indebtedness  of  the  corporation 
not  contracted  or  incurred  in  the  purchase  of 
non-taxable  property  or  securities,  or  for  the 
purpose  of  evading  taxation.  (The  amount 
owing  for  goods  imported  by  above  corporation 
from  foreign  countries  on  hand  in  unbroken 
original  packages  and  the  capital  stock  of  the 
corporation  must  not  be  included.)  I'emize  as 
follows : 

Bonds  not  secured  by  mortgage  of 

real  estate  

Notes  

Open  Accounts  . . . 


19.  The  aggregate  of  the  items  set  down  in 

answer  to  questions  10  to  18  inclusive $ 

Additional  Information  Required 
-a.  Total  par  value  of  capital 

stock  issued  $ 

b.  Rate  of  last  dividend....  Date 

c.  Amount  of  surplus,  if 

any,  as  shown  by  the 

books  $ 

d.  Amount  of  indebtedness 

for  above  imported 
goods;  this  amount  is 
not  included  in  No.  18 

but  is  in  addition  thereto  $ 

Gross  assets  as  shown  by  answer  to  question 


9 $ 

Aggregate  of  deductions  from  gross  assets  as 
shown  by  answer  to  question  19 $ 

16 


-6* 


Subtract  the  deductions  from  the  above 

assets . $ . 

Add  “secured  debts”  upon  which  no  registra- 
tion tax  has  been  paid $. 

The  result  is  the  Capital  Stock  Liable  to 

Taxation $. 

$- 


The  principal  office  or  thei  place  of  transacting  the 
Financial  Business  of  the  said  corporation  is  situated 
in  the  Borough  of  Manhattan,  in  The  City  of  New 


York,  at  No Street. 

The  City  of  New  York,)  . 

County  of  New  York,) 

I,  the 


. of  the  said  corpor- 
ation, being  duly  sworn,  do  hereby  certify  that  the  fore- 
going is  in  all  respects  a just  and  true  statement  of  the 
property  and  debts  of  the  corporation  on  the  first  day 
of  October,  1911. 


(Sign  here.) 

Sworn  to  before  me  this 

day  of  191  . 


(Any  person  authorized  to  administer  oaths.) 


H 

Z 

w 


S 

uu 

H 

< 


m 


2 

<? 


Commissioners  of  Taxes  and  Assessments. 


SECURED  DEBTS  LAW. 


Chapter  802  of  the  laws  of  1911,  amends  th< 
Tax  Law  by  adding  article  fifteen,  sections  33c 
to  337  inclusive,  to  take  effect  September  first 
1911.  The  text  of  the  new  article  is  as  follows 

Article  15.  Tax  on  Secured  Debt. 

§ 330.  Definitions.  The  words  “secured 
debts,”  as  used  in  this  article,  shall  include: 

(1) .  Any  bond,  note  or  debt  secured  by  mort 
gage  of  real  property  recorded  in  any  state  o 
country  other  than  New  York  and  not  recorded 
in  the  state  of  New  York; 

(2) .  any  and  all  bonds,  notes  or  written  01 
printed  obligations,  forming  part  of  a series  o 
similar  bonds,  notes  or  obligations,  the  paymen 
of  which  is  secured  by  a mortgage  or  deed  o 
trust  of  real  or  personal  property,  or  both,  whiclj 
mortgage  or  deed  of  trust  is  recorded  in  som< 
place  outside  of  the  state  of  New  York  and  no 
recorded  in  the  state  of  New  York ; 

(3) .  any  and  all  bonds,  notes  or  written  oj 
printed  obligations,  forming  part  of  a series  o 
similar  bonds,  notes  or  obligations,  which  ar< 
secured  by  the  deposit  of  any  valuable  securities 
as  collateral  security  for  the  payment  of  sue! 
bonds,  notes  or  obligations,  under  a deed  of  trus 
or  collateral  agreement  held  by  a trustee ; 

(4) .  any  bonds,  debentures  or  notes,  forming 
part  of  a series  of  similar  bonds,  debentures  o: 
notes,  which  by  their  terms  are  not  payable  with 
in  one  year  from  their  date  of  issue  and  whicl 
are  not  Issued  for  an  amount  exceeding  om 
thousand  dollars  for  each  such  bond,  debenture 
or  note,  and  the  payment  of  which  is  unsecured 
by  the  deposit  or  pledge  of  any  collateral  secur 
ity.  The  term  “secured  debts”  as  used  in  thj 
article  shall  not  include  securities  held  as  col 
lateral  to  secure  the  payment  of  bonds  taxabf 
under  this  article  or  under  article  eleven  of  thi 
chapter. 


18 


§ 33 1.  Payment  of  tax  on  secured  debt.  Any 
person  may  take  or  send  to  the  office  of  the  comp- 
troller of  this  state  any  secured  debt  or  a de- 
scription of  the  same,  and  may  pay  to  the  state  a 
tax  of  one-half  per  centum  on  the  face  value 
thereof,  under  such  regulations  as  the  comp- 
troller may  prescribe,  and  the  comptroller  shall 
thereupon  make  an  indorsement  upon  said  secur- 
ed debt  or  shall  give  a receipt  for  the  tax  there- 
on, describing  said  secured  debt  and  certifying 
that  the  same  is  exempt  from  taxation,  which  en- 
dorsement or  receipt  shall  be  duly  signed  and 
dated  by  the  comptroller  or  his  duly  authorized 
representative.  The  comptroller  shall  keep  a 
record  of  such  indorsements  and  receipts  with 
a description  of  such  secured  debt,  together  with 
the  name  and  address  of  the  person  presenting 
the  same  and  the  date  of  registration.  The  se- 
cured debts  so  indorsed  or  described  in  such 
receipt  shall  thereafter  be  exempt  from  all  tax- 
ation in  the  state  or  any  of  the  municipalities  or 
local  divisions  of  the  state  except  as  provided  in 
sections  twenty-four,  one  hundred  and  eighty- 
seven,  one  hundred  and  eightv-eight,  one  hun- 
dred and  eighty-nine  of  this  chapter,  and  in  arti- 
cles ten  and  twelve  of  this  chapter. 

^ 332.  Stamps,  how  prepared  and  used.  Ad- 
hesive stamps  for  the  purpose  of  paying  the  tax 
provided  for  by  this  article  shall  be  prepared  by 
the  comptroller,  in  such  form,  and  of  such  de- 
nominations and  in  such  quantities  as  he  may 
from  time  to  time  prescribe.  Upon  the  payment 
of  the  tax  provided  by  this  article  upon  any  se- 
cured debt  the  comptroller  shall  affix  stamps  of 
the  proper  denominations,  equal  in  face  value  to 
the  amount  of  tax  paid,  to  the  secured  debt  or  to 
the  receipt  for  the  tax,  and  shall  cancel  the  same 
by  the  seal  of  his  office  or  by  such  other  cancel- 
ing device  as  he  may  prescribe. 

§ 333.  No  exemption  unless  stamps  are  affix- 
ed and  cancelled.  The  payment  of  the  tax  upon 
any  secured  debt,  as  provided  in  this  article, 


19 


shall  not  exempt  such  secured  debt  from  taxa- 
tion, as  provided  in  section  three  hundred  and 
thirty-one,  unless  stamps  to  the  proper  amount 
are  affixed  and  canceled,  as  provided  in  the  pre- 
ceding section. 

§ 334.  Contracts  for  dies;  New  York  city 
office;  expenses,  how  paid.  The  state  comptrol- 
ler is  hereby  directed  to  make,  enter  into  and  ex- 
cute  for  and  in  behalf  of  the  state  such  contract 
or  contracts  for  dies,  plates  and  printing  neces- 
sary for  the  manufacture  of  the  stamps  provided 
for  by  this  article,  and  provide  such  stationery 
and  clerk  hire,  together  with  such  books  and 
blanks  as  in  his  discretion  may  be  necessary  for 
putting  into  operation  the  provisions  of  this  arti- 
cle ; he  shall  be  the  custodian  of  all  stamps,  dies, 
plates  or  other  material  or  thing  furnished  by 
him  and  used  in  the  manufacture  of  such  state 
tax  stamps.  In  addition  to  the  receipt  of  taxes 
payable  as  provided  in  this  article  at  his  office  in 
the  city  of  Albany,  the  comptroller  shall  maintain 
an  office  for  the  receipt  of  such  taxes  injthe  city 
of  New  York.  He  shall  appoint,  and  may  at 
pleasure  remove,  such  assistants,  clerks  and 
other  persons  as  may  be  necessary  to  carry  out 
the  provisions  of  this  article  and  shall  fix  and 
determine  their  salaries.  All  expenses  incurred 
by  him  and  under  his  direction  in  carrying  out 
the  provisions  of  this  article  shall  be  paid  to  him 
by  the  state  treasurer  from  any  moneys  appro- 
priated for  such  purpose. 

§ 335.  Illegal  use  of  stamps;  penalty.  Any 
person  who  shall  willfully  remove  or  cause  to  be 
removed,  alter  or  cause  to  be  altered  the  cancel- 
ing or  defacing  marks  of  any  adhesive  stamp 
provided  for  by  this  article  with  intent  to  use  the 
same,  or  to  cause  the  use  of  the  same  after  it 
shall  have  been  used,  or  shall  knowingly  or  will- 
fully sell  or  buy  any  washed  or  restored  stamp, 
or  offer  the  same  for  sale,  or  give  or  expose  the 
same  to  any  person  for  use,  or  knowingly  use 
the  same  or  prepare  the  same  with  intent  for  the 


20 


further  use  thereof;  or  shall  willfully  use  any 
counterfeit  stamp  or  any  forged  stamp  with  in- 
tent to  defraud  the  state  of  New  York,  shall  be 
guilty  of  a misdemeanor  and  on  conviction  there- 
of shall  be  liable  to  a fine  of  not  less  than  five 
hundred  nor  more  than  one  thousand  dollars,  or 
be  imprisoned  for  not  more  than  six  months,  or 
by  both  such  fine  and  imprisonment,  at  the  dis- 
cretion of  the  court. 

§ 336.  No  deduction  of  debts  against  taxable 
secured  debt.  The  owner  of  any  secured  debt, 
on  which  the  tax  provided  for  in  this  article  has 
not  been  paid,  shall  be  assessed  upon  such  se- 
cured debt  in  the  taxing  district  in  which  he 
resides,  upon  the  fair  market  value  of  such  se- 
cured debt  and  no  deduction  for  the  just  debts 
owing  by  him  shall  be  allowed  against  the  as- 
sessed value  of  such  secured  debt,  as  provided 
in  section  twenty-one  of  this  chapter  or  else- 
where in  this  chapter  or  in  any  other  law  of  this 
state. 

§ 337.  Application  of  taxes.  The  taxes  im- 
posed under  this  article  and  the  revenues  thereof 
shall  be  paid  by  the  state  comptroller  into  the 
state  treasury  and  be  applicable  to  the  general 
fund,  and  to  the  payment  of  all  claims  and  de- 
mands which  are  a lawful  charge  thereon. 


21 


